Findel boosted by increased home shopping sales

HOME shopping and educational supplies business Findel delivered an upbeat message about its performance today despite operating in a difficult trading environment.

In an interim management statement to August 15 2008 the Burley-in-Wharfedale  group said sales were 2% ahead of the same period last year.

Findel said that despite what was considered “traditionally a seasonally quiet period” in home shopping , the division had continued to make progress, with sales 3% ahead of last year.

Bad debt rates have continued to fall from their peak in March and are in line with expectations.

Findel shares fell to a five-year low in May amid concerns that bad debt may cause the company to breach banking covenants after it had to increase its provision for bad debts in its home shopping division by £5m.

The educational supplies division continues to operate in a fairly flat trading environment but despite a relatively quiet start to the year sales demand for the year to date has moved to 2% ahead of last year following a number of strong export orders.

In the healthcare division sales in the first 19 weeks of the year were 16% ahead of the same period last year.

Chairman Patrick Jolly said: “In the current economic environment the focus for the group remains on the efficient management of our business. The group is trading well and the board looks forward to a satisfactory outcome to the year.”

In May Findel reported that turnover for the year ended March 31 was £634m – down from its previously projected figure of £640m.

Pre-tax profits increased from £55.9m in 2007 to £57m.

At the time the group said that due to the “deteriorating economic climate” it had further reviewed its debt book with the move denting pre-tax profits.